RE: Anonymous digital cash, on top of bitcoin

>> For example, if Merchant Madeline receives 1 unit of a hypothetical 
>> currency called W3C credits from Buyer Beatrice, and Beatrice tries to 
>> also use that same 1 credit to pay back Creditor Claudia, then 
>> Beatrice loses the (variable amount of) excess W3C credits backing the 
>> 1 credit she issued twice (perhaps each recipient could deduct the up 
>> to the amount they were owed from these "excess backing credits").

>The bank could take this from the account deposit. But it's maybe not discouraging enough in case a user can manage to (1) spend the same coin >not twice, but thousands of times, and (2) really receive something valuable for a reasonable proportion of those transactions.

Why have a bank at all?  If somehow having two digitally signed transactions using the same token (or input in bitcoin speak) can reveal a private key or decrypt a token of value from the double spent token itself? You wouldn't need a bank to construct such a token if it were backed and redeemed in bitcoin.

Received on Wednesday, 30 October 2013 13:41:24 UTC